Question

Which one of the following is an unintended result of the Sarbanes-Oxley Act? Multiple Choice More detailed and accurate financial reporting Increased management awareness of internal controls Corporations delisting from major exchanges Increased responsibility for corporate officers Identification of internal control weaknesses

Answer 1

Answer:

Increased responsibility for corporate officers

Explanation:

A review of eight thousand public companies, on the study of the impact of the Sarbanes-Oxley Act (SOX) of 2002 revealed that SOX increased directors' workload and risk, and increased demand by mandating that firms have more outside directors.

It was also revealed that both broad-based changes and cross-sectional changes (by firm size) occurred because Board committees meet more often post-SOX and Director and Officer insurance premiums have doubled.